Παρασκευή 14 Ιουνίου 2024

Greece's Digital Advertising Market in 2023: Growth, Challenges, and Comparative Insights with Europe

IAB has published the Europe AdEx Benchmark Report for 2023, covering the digital advertising market across 29 European countries. The total digital advertising market in Europe was valued at €96.9 billion in 2023. The market saw an overall growth of 11%, with significant contributions from the Balkans and South East Europe. Turkey led the way with a 50% increase, followed by Hungary at 27.6%, and Ukraine at 25.2%. In comparison, the US digital advertising market grew by 7.3% last year, reaching a total value of €245 billion.

In absolute terms, the largest market in Europe remains the United Kingdom, with digital ad spending exceeding €34 billion, followed by Germany at €13.4 billion, France at €9.5 billion, Spain at €5.2 billion, and Italy at €4.8 billion. Greece ranks 20th with €232 million, while Serbia, Bulgaria, and Slovenia hold the last positions with €103 million, €102 million, and €78 million respectively. Compared to 2022, Greece is fifth in digital advertising growth, but when adjusted for inflation, it ranks second, only behind Turkey.

Display Advertising: Display is the largest medium (including or excluding social media), but social media is the fastest-growing segment. In Greece, €106 million was spent on display in 2023, making it the seventh lowest market, with an annual increase of 20%, the fifth highest in Europe. Despite the significant increase, the share of display in total digital ad spend remains the lowest in Europe at 33%, compared to the average of 49.9%. Sweden follows with 38%.
Social Media: Similarly, Greece ranks third from the bottom in social media spending. The share of social media in display advertising is 31%, compared to the European average of 48.3%, with Ireland leading at 75.7%.

Video Advertising: Video accounts for 26.1% of display spending in Greece, below the average of 46.1%, with Ireland again leading at 56%.

Digital Audio: Greece ranks second last in digital audio, with only 0.4% of ad spend allocated to this medium, compared to the European average of 3.4%.

Programmatic Advertising: In Greece, programmatic buying constitutes 36.4% of the market. Ukraine leads with 85%, followed by the UK at 84% and Serbia at 78.8%.

Search Advertising: Greece excels in search advertising, which accounts for 65.4% of total digital ad spend, the highest in Europe. Sweden is second with 55.2%, while the average is 43.1%.

Classifieds and Directories: Classifieds account for 1.6% of digital advertising in Greece, lower than the European average of 7%.

The overall picture of digital advertising in Greece aligns with my intuitive understanding from conversations with colleagues and job postings. The PPC/performance segment dominates, with television still holding a significant position. Unfortunately, investment in new media such as audio and in brand/awareness through display is still considered a luxury. The low percentage of programmatic buying highlights the distortions in the Greek market, as emerging markets like Ukraine, Serbia, and the Czech Republic lead in programmatic adoption. This is also evident from the lack of a DV360 reseller for the Greek market.